Frauds and Swindling

News about Frauds and Swindling, including commentary and archival articles published in The New York Times.

Chronology of Coverage

Jul. 24, 2015

Long-running investigation into 2014 hacking of JPMorgan Chase has resulted in possibly connected arrests on fraud charges of Anthony R Murgio and Yuri Levedev in Florida and of Gery Shalon and Ziv Orenstein in Israel; fifth suspect, Joshua Samuel Aaron, has yet to be arrested. MORE

Jul. 22, 2015

Government Accountability Office investigators say thousands of doctors and health care providers have used 'questionable' addresses to bill Medicare and that Medicare has not verified addresses adequately; warn that invalid addresses could indicate fraud. MORE

Jul. 22, 2015

Authorities suspect that Anthony Murgio, Yuri Lebedev, Gery Shalon and Ziv Orensteinn, arrested in connection with series of fraudulent investment schemes, may have ties to massive 2014 data breach at JPMorgan Chase; are still searching for Joshua Samuel Aaron, who has also been charged in relation to pump-and-dump schemes that spanned globe. MORE

Jul. 21, 2015

New York State Atty Gen Eric T Schneiderman says National Children's Leukemia Foundation paid out roughly only $57,000 to leukemia patients from $9.7 million it collected from 2009 to 2013; is seeking to close the charity and recover money that had been raised fraudulently. MORE

Jul. 21, 2015

Independent committee of experts hired by Toshiba releases report saying company overstated its earnings by more than $1.2 billion since 2008, and that top executives pushed for unachievable financial goals; chief executive Hisao Tanaka and vice chairman Norio Sasaki plan to announce their resignations; situation marks one of Japan's largest corporate accounting scandals ever. MORE

Jul. 17, 2015

Defense lawyers for former Rep Michael G Grimm of Staten Island, citing his troubled childhood, ask for leniency ahead of his sentencing for guilty plea on tax fraud; prosecutors seek up to 30 months in prison. MORE

Jul. 9, 2015

New York City audit of Queens Library finds over $310,000 in prohibited expenses that could amount to embezzlement and fraud by executives, including system president Thomas W Galante. MORE

Jun. 26, 2015

New Jersey jury finds that Jews Offering New Alternatives for Healing, prominent group offering gay 'conversion therapy,' violated Consumer Fraud Act by claiming it could help men cease having homosexual urges; decision is hailed by gay-rights activists as important victory in effort to discredit and ban the therapy. MORE

Jun. 24, 2015

John Franklin files suit accusing former business partner Joshua B Newman of misappropriating more than $400,000 from their joint business venture to open several CrossFit training centers; situation is latest legal trouble for Newman, who has been accused by federal prosecutors of defrauding investors. MORE

Jun. 24, 2015

FBI agents arrest Gregg R Mulholland during layover in Phoenix and charge him with masterminding $300 million penny-stock trading scheme and then laundering profits offshore; caps federal investigation that lasted more than two years. MORE

Jun. 18, 2015

Newly unsealed documents reveal that three Postal Service employees in Manhattan have been accused of defrauding Secret Santa program in order to obtain gifts that were meant for needy children; Terry Jackson, Mahogany Strickland and Nickyves Saint-Albord are said to have written letters posing as children from Nov 2013 to January 2014. MORE

Jun. 14, 2015

Wave of anticorruption protests sweeping Latin America spreads to Guatemala and Honduras as demonstrators demand resignations of Pres Otto Perez Molina and Pres Juan Orlando over allegations of embezzlement and tax fraud within their administrations; protests differ from other anticorruption movements in Central America in that that they are grassroots driven and are directed at perpetrators who are still in office. MORE

Jun. 13, 2015

Michael Wilson Crime Scene column relates experiences of veteran New York Police Detective Michael McFadden with psychics engaged in fraudulent activity, such as fraud perpetrated by Priscilla Kelly Delmaro; notes while McFadden acknowledges that there may be psychics who do not defraud their customers, fraud schemes are very common, even if they are not as elaborate as Delmaro's. MORE

Jun. 10, 2015

Questions are mounting over Education Dept's announcement of debt-relief measures for students defrauded by for-profit Corinthian Colleges, which will probably apply to small pool due to requirements regarding evidence of being defrauded; experts say cost of debt-relief measures is still unclear, largely because of daunting application process that will limit numbers of students who may benefit from them. MORE

Jun. 10, 2015

Editorial commends Education Sec Arne Duncan for forgiving federal loans to tens of thousands of students who were duped into meaningless degrees from now-defunct Corinthian Colleges; calls on Congress to follow his lead and tighten rules governing for-profit schools. MORE

Jun. 5, 2015

Securities and Exchange Commission files suit against Bulgarian man Nedko Nedev, accusing him of misusing federal database to submit false takeover bids for Avon Products and Rocky Mountain Chocolate Factory; Nedev had taken position in both companies. MORE

Jun. 1, 2015

Editorial argues that retraction by journal Science of poorly-vetted study finding that gay political canvassers could change voters' views on same-sex marriage underscores need to address alarming uptick of cheating and fraud in scientific and academic papers; calls on scientific community to create more robust data validation process, and recommends increased federal funding for investigation of fraudulent research. MORE

May. 29, 2015

Internecine political battles have repeatedly disrupted Security and Exchange Commission's accounting fraud case against Computer Sciences Corp; terms of settlement have been upended several times as commission's two Democrats clash with two Republicans who are loath to levy big corporate fines; chairwoman Mary Jo White, who would usually cast deciding vote, has recused herself due to personal ties. MORE

May. 28, 2015

Investigators in Pakistan, with help of Interpol and the Federal Bureau of Investigation, arrest Axact chief executive Shoaib Ahmed Shaikh and four company executives on fraud, forgery and money laundering charges; company, which claimed to be Pakistan's largest software exporter, is accused of having run a global diploma mill, making millions of dollars through hundreds of fake online education websites. MORE

May. 27, 2015

Fraud trial begins for Steven Davis, Stephen DiCarmine and Joel Sanders, three former executives at defunct law firm Dewey & LeBoeuf who stand accused of using accounting gimmicks to defraud lenders; lawyers for defendants deny their clients' knowledge of fraud, and seek to deflect blame for firm's collapse onto 'greedy' lawyers who abandoned firm and stole clients in lead-up to its bankruptcy. MORE

May. 27, 2015

IRS discloses that organized criminals were able to gain access to past tax returns of more than 100,000 people and to use information to claim some $50 million in fraudulent refunds; say criminals used Social Security numbers and other personal information that was obtained elsewhere to perpetrate the fraud; opens investigation and shuts down 'Get Transcript' application that was exploited. MORE

May. 26, 2015

Former Israeli Prime Min Ehud Olmert is given eight-month prison sentence in fraud case involving American businessman Morris Talansky; sentence is postponed to allow time for appeal. MORE

May. 25, 2015

Trial is set for Tom Hayes, former Citigroup and UBS trader facing eight counts of conspiracy in relation to Libor rate-rigging scheme; indictment claims Hayes was ringleader among more than dozen traders involved in fraud; Hayes's trial carries added weight as regulators seek to justify billions in fines levied against banks in wake of Libor scandal, and to prove that individuals will be held accountable as well as institutions. MORE

May. 24, 2015

Number of senior journalists at developing Pakistani television network Bol resign, led by editor in chief Kamran Khan, due to scandal involving parent company Axact's profiting from sales of fake diplomas. MORE

May. 23, 2015

Pakistani investigators, politicians and media have stepped up scrutiny on practices of Karachi-based software company Axact; company founder Shoaib Ahmed Shaikh is set to be interviewed by government investigators over accusations that company has made money by selling degrees through fictitious online schools. MORE

May. 22, 2015

Problems with regulation of charities have been revealed by charges brought against James T Reynolds Sr for operating fraudulent charities that fleeced donors of more than $187 million; oversight of charities is largely responsibility of Internal Revenue Service, and strengthening regulation has run into obstacles like lobbying and insufficient political will to change system. MORE

May. 22, 2015

Federal authorities arrest serial entrepreneur Joshua B Newman on charges of wire fraud and misusing money from more than a dozen investors in connection with his plans to open CrossFit training centers in New York and New Jersey. MORE

May. 21, 2015

Hunter Roberts Construction Group admits to widespread overbilling scheme that affected number of projects in New York City over a period of eight years; agrees to pay $7 million to settle charges. MORE

May. 20, 2015

Pakistani investigators raid offices of software company Axact in Karachi, which came to attention for operating global diploma mill that made millions of dollars from network of fake online schools; New York Times reported links between company and at least 370 websites. MORE

May. 20, 2015

Editorial examines revelation that Pakistani company Axact ran global empire of bogus educational websites that made millions while issuing meaningless degrees; argues breadth of fraud gives Congress and regulators all the reason they need to begin exposing similar 'degree mills'. MORE

May. 20, 2015

Complaint filed by Federal Trade Commission contends that four cancer charities operated out of James T Reynolds Sr's Cancer Fund of America are 'sham charities'; charges Reynolds and organization with deceiving donors and misusing millions of dollars in donations for personal expenditures and entertainment; charities include Cancer Support Services, Children's Cancer Fund of America and the Breast Cancer Society. MORE

May. 18, 2015

Investigation reveals that sprawling online education empire of roughly 370 websites maintained by Pakistani software company Axact is almost entirely fraudulent, reaping tens of millions of dollars per year by peddling bogus degrees; founder Shoaib Ahmed Shaikh, who has emerged as media mogul in his home country, has denied accusations of fraud and that his company is supported by Pakistani government. MORE

May. 13, 2015

Steven Davidoff Solomon Deal Professor column examines curious survival of placement agents, middlemen who earn millions connecting pension funds to private equity firms, despite their repeated involvement in bribery and fraud; cites study finding that while majority of private equity funds using placement agents are under-performers, agents do have key advantages, and the best of them can secure lucrative returns for funds. MORE

May. 11, 2015

Guatemalan Vice Pres Roxana Baldetti's resignation in midst of customs fraud scandal is throwing country into disarray as it prepares for September election and public outrage over corruption swells. MORE

May. 1, 2015

Federal jury in Manhattan finds former Seedco director Alex Saavedra did not participate in widespread pattern of fraud at nonprofit agency; finds he was accountable for only 13 false placements out of more than 30,000 job seekers since 2004; agency previously settled charges. MORE

May. 1, 2015

James B Stewart Common Sense column profiles Maurice R Greenberg, 90-year old financier who built AIG into a global insurance colossus before being forced to resign in 2005; observes Greenberg is set to take stand in decade-old civil fraud case that was filed against him, and is also driving force behind case against federal government alleging it unconstitutionally seized AIG's assets during financial crisis. MORE

Apr. 17, 2015

Washington State Auditor Troy Kelley is indicted on federal charges of filing false tax returns, attempted obstruction of civil lawsuit and possession of stolen property; is taking temporary leave of absence beginning May 1. MORE

Apr. 17, 2015

Joshua Bryce Newman, Yale graduate known as a young, successful entrepreneur, faces series of lawsuits from investors who cite a history of bounced checks, unpaid debts and misrepresented intentions; trail of litigation reveals how a charismatic figure with strong connections can still seduce investors in wake of financial crisis. MORE

Apr. 15, 2015

Florida Dr Salomon E Melgen is indicted on 76 counts of health care fraud, filing false claims and making false statements in political corruption case involving New Jersey Sen Robert Menendez; prosecutors accuse him of attempting to cheat Medicare of $190 million. MORE

Apr. 11, 2015

Liana Barrientos of the Bronx, arrested in marriage scam when it was discovered that she had 10 husbands concurrently, acknowledges that at least one marriage was cash-for-citizenship arrangement, but pleads not guilty to fraud. MORE

Apr. 10, 2015

Liana Kristina Barrientos is charged with felony fraud charge for scheme in which she married multiple men; fraud charge stems from Barrientos having specified on 2010 marriage license that she was never married before; few details and much speculation exist in regard to Barrientos's marriages. MORE

Apr. 10, 2015

Indian court sentences former Satyam Computer Services chairman B Ramalinga Raju and nine others to seven years in prison in one of biggest corporate accounting fraud cases in India's history. MORE

Apr. 5, 2015

Robert Frank Inside Wealth column investigates accusation of fraud by Russian billionaire and art collector Dmitry Rybolovlev, who claims dealer Yves Bouvier overcharged him by more than $20 million for Modigliani painting; observes that case has fixated European fine-art world, and offers glimpse into workings of private art markets. MORE

Apr. 1, 2015

Twenty-three people, including 9 New York doctors, are charged in connection with Medicaid scheme in which homeless people were lured to clinics with promise of free shoes; patients were referred to specialists and subjected to unnecessary tests and procedures that were billed to Medicaid; operation was run by Eric Vainer, who owned clinics, supplied medical equipment and received kickbacks from doctors. MORE

Apr. 1, 2015

Inquiry by Homeland Security's Citizenship and Immigration Services into allegations of green card fraud among Sikh population in Queens has raised advocates' concerns that scrutiny will endanger legitimate petitions; 25-year-old federal program imparts special immigrant juvenile status on abused, neglected or abandoned immigrant youths and allows them to apply for green cards. MORE